According to the latest International Monetary Fund (IMF) data,
China has replaced the
US as the world's largest economy. IMF purchasing power parity figures indicate that
China will produce $17.6 trillion worth of goods and services in the current year, while the
US will produce $17.4 trillion.
The IMF predicts that the gap between the two countries in terms of goods and services production will reach $1 trillion in 2015.
Purchasing power parity refers to the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.